Winnipeg, MB, Oct. 14, 2014

ICE Futures Canada canola contracts were up on Tuesday, taking some direction from the continued strength in CBOT soybeans.

Soybeans rallied on Monday, when Canadian markets were closed for Thanksgiving, and with soybeans up again on Tuesday, the Canadian oilseed followed its US counterpart.

In addition, the November canola contract moved back above the psychological C$400 per tonne level, which was bullish from a chart standpoint, according to participants. Fund traders are still holding very large short positions in canola, and some of the buying interest was tied to short-covering. A weaker tone in the Canadian dollar was also supportive for canola.

However, CBOT soyoil was down on the day, which limited the upside potential in canola. Favourable harvest weather across Western Canada and increased farmer selling also put some pressure on values.

About 37,417 canola contracts were traded on Tuesday, which compares with Friday when 27,807 contracts changed hands. Spreading was a feature, accounting for 26,952 of the contracts traded.

Milling wheat, durum, and barley were all untraded.

Settlement prices are in Canadian dollars per metric ton.

                          Price      Change
Canola            Nov     406.10    up 7.20
                  Jan     411.80    up 6.60
                  Mar     419.00    up 6.50
Milling Wheat     Dec     214.00    unch
                  Mar     222.00    unch
Durum             Dec     356.50    unch
                  Mar     357.50    unch
Barley            Dec     117.50    unch
                  Mar     120.50    unch
     Spread trade prices are in Canadian dollars and the volume
represents the number of spreads:
Months        Prices                      Volume
Canola
Nov/Jan       6.50 under to 5.50 under     9,437
Nov/Mar       13.40 under to 12.30 under   1,055
Nov/Jul       22.00 under to 21.10 under     115
Nov/Nov       27.00 under to 23.60 under      14
Jan/Mar       7.30 under to 6.50 under     1,954
Jan/Jul       15.70 under                      4
Mar/May       5.70 under to 5.10 under       503
Mar/Jul       9.20 under to 8.70 under         9
May/Jul       3.80 under to 3.00 under       309
Jul/Nov       6.10 under to 2.50 under        76

Commodity News Service